World Bank improving Rio Public Service Delivery

More than 16 million people living in the Rio de Janeiro State will benefit from a new US$48 million loan approved today by the World Bank Board of Directors. The loan will finance a project designed to improve the delivery of public services. The Rio State Strengthening Public Management and Integrated Territorial Development Technical Assistance Project will provide technical assistance for the development of fiscal and infrastructure reforms designed to achieve better integration between the 19 municipalities of Rio de Janeiro’s Metropolitan Area. It will also support the installation of an early warning system for heavy rainfall events that will cover all municipalities of the State.

In recent years, Rio de Janeiro has entered a new development phase due to the development of state industrial poles and opportunities from mega-events such as the 2014 World Cup and 2016 Olympic Games. However, the quality of public services, especially the mass transport system, has been a constant source of frustration for Rio’s citizens.

“The World Bank has closely followed Rio de Janeiro’s development cycle since 2010, through a partnership with good results,” said Sérgio Cabral Filho, Governor of the State of Rio de Janeiro. “This new loan is a further demonstration of the Bank’s confidence in our government. This funding will be critical to improve services in education, health and sanitation. It is a privilege to have the World Bank in a project aimed at providing better quality of life for the population of the state of Rio de Janeiro.”

The planning and management of public services in the metropolitan area of Rio faces the challenge of a highly fragmented development path. The project will improve institutional capacity within the State to help in the integration of services offered in the various municipalities. This will be done with an integrated approach connecting the planning and execution of multiple sectors such as housing, urban transport, social development and finance. The project also includes specific benefits such as the improvement of the capacity to identify, locate and support missing people and those interned in public hospitals.

“Efficient public management that is well coordinated and based on high-quality information is vital for the sustainable economic and social development of Rio. This project will support the Government in its efforts to improve the quality of its public spending and thereby provide better services, such as transport, education and health, for the people,” said Deborah L. Wetzel, World Bank Brazil Country Director.

Among the outcomes supported by the project are:

A tailor-made metropolitan development and housing program;

Support for the expansion of the public transport system and improvement of connections;

An environmental and disaster risk management system;

Upgrading of core finance and taxation functions;

A monitoring and evaluation system for social programs; and

Improvement of public sector management procedures and administrative systems.

This loan from the International Bank for Reconstruction and Development (IBRD) to the State of Rio de Janeiro is guaranteed by the Federative Republic of Brazil and has a final maturity of 25 years, with a 4.5 year grace period.